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Has anyone experienced difficulties with Medicaid by claiming a parent as a dependent? I’d like to claim my dad as a dependent, but I don’t want him to lose Medicaid. Anything else I need to know? Dangers?
Update: I contacted the state Medicaid office and got the following reply. The state is Hawaii. Perhaps other states are different.
“Thank you for your recent inquiry! Please indicate that you claim him on his application, however we would not count your income towards his eligibility.”
Thank you, DeckApe for updating us. Be certain to keep this proof with your papers so that you have proof you asked the question and it is answered. Take care.
I have a similar concern for our LO regarding the Medicaid portion of your question. We already know we can declare LO as a dependent once she is a ward because the IRS web site says so. But whether or not we should because that might impact the Medicaid, hmmm...good question OP...
How much of a tax savings are you looking at? Like six figures? and how much risk are you good on being at?
Here’s why I ask: average LTC Medicaid NH room&board payment is abt $190 a day. So roughly $70K that Medicaid pays a NH per year for room & board. Private pay rates tend to be 2x - 3x Medicaid, so 140K - 280K per year.
So if Medicaid - for whatever reason due to reviewing “dependency” - delayed or disallowed his LTC eligibility, do you have the $ to pay up front each month at private pay rate for 3-6 mo to a year? And you ok on running this risk?….. like it’s not going to be an issue that interferes for paying your own personal bills and you have the time & humor to answer in detail to whatever minutia Medicaid requests on the dependency and within 14 days over the rest of 2022?
If not, my suggestion is just fold it and let it be that in your heart and in your wallet, you find contentment that you did all you could to financially support dad and forgetabtit with IRS & Medicaid.
This is a question for an accountant because it is a question you cannot afford to get wrong. Saying someone is your "dependent" means that you are providing for more than a certain percentage of cost of that persons care. As for your child you provide everything. That cost means that your senior is not without financial resources as YOU are in fact a financial resource. That means that senior may NOT be eligible for government assistance. So check with an accountant and check with medicaid itself. Again, you can't get this one wrong, so don't depend on a Forum in which we all have our own opinions but few of us are expert trained advise. Good luck. Interesting question.
Medicaid caring for him in a nursing home in home or health insurance?
If he is in a NH you cannot claim him. He is being supported by the State/government not you. You have to provide over 50% of his care. So if he brings in 10k a year and and you have to provide another 10k to provide his care, then maybe you can claim him. But you have to prove it. Him living with you does not make him a dependent. If most of his income is SS and other income does not amount to a certain amount a year, he may not have to pay federal and State taxes anyway.
You need to talk to a tax accountant before you go this route.
Thank you for your reply. He checks all the boxes for a dependent for previous years (amending my returns for 2018-2020). I'm almost sure I provided more than 51% of his financial support in 2021. In 2022 I certainly may not claim him as a dependent.
Regardless, I wanted to know if other people who claim a parent as a dependent have had run-ins with Medicaid because of claiming a parent as a dependent.
By proceeding, I agree that I understand the following disclosures:
I. How We Work in Washington.
Based on your preferences, we provide you with information about one or more of our contracted senior living providers ("Participating Communities") and provide your Senior Living Care Information to Participating Communities. The Participating Communities may contact you directly regarding their services.
APFM does not endorse or recommend any provider. It is your sole responsibility to select the appropriate care for yourself or your loved one. We work with both you and the Participating Communities in your search. We do not permit our Advisors to have an ownership interest in Participating Communities.
II. How We Are Paid.
We do not charge you any fee – we are paid by the Participating Communities. Some Participating Communities pay us a percentage of the first month's standard rate for the rent and care services you select. We invoice these fees after the senior moves in.
III. When We Tour.
APFM tours certain Participating Communities in Washington (typically more in metropolitan areas than in rural areas.) During the 12 month period prior to December 31, 2017, we toured 86.2% of Participating Communities with capacity for 20 or more residents.
IV. No Obligation or Commitment.
You have no obligation to use or to continue to use our services. Because you pay no fee to us, you will never need to ask for a refund.
V. Complaints.
Please contact our Family Feedback Line at (866) 584-7340 or ConsumerFeedback@aplaceformom.com to report any complaint. Consumers have many avenues to address a dispute with any referral service company, including the right to file a complaint with the Attorney General's office at: Consumer Protection Division, 800 5th Avenue, Ste. 2000, Seattle, 98104 or 800-551-4636.
VI. No Waiver of Your Rights.
APFM does not (and may not) require or even ask consumers seeking senior housing or care services in Washington State to sign waivers of liability for losses of personal property or injury or to sign waivers of any rights established under law.
I agree that:
A.
I authorize A Place For Mom ("APFM") to collect certain personal and contact detail information, as well as relevant health care information about me or from me about the senior family member or relative I am assisting ("Senior Living Care Information").
B.
APFM may provide information to me electronically. My electronic signature on agreements and documents has the same effect as if I signed them in ink.
C.
APFM may send all communications to me electronically via e-mail or by access to an APFM web site.
D.
If I want a paper copy, I can print a copy of the Disclosures or download the Disclosures for my records.
E.
This E-Sign Acknowledgement and Authorization applies to these Disclosures and all future Disclosures related to APFM's services, unless I revoke my authorization. You may revoke this authorization in writing at any time (except where we have already disclosed information before receiving your revocation.) This authorization will expire after one year.
F.
You consent to APFM's reaching out to you using a phone system than can auto-dial numbers (we miss rotary phones, too!), but this consent is not required to use our service.
“Thank you for your recent inquiry! Please indicate that you claim him on his application, however we would not count your income towards his eligibility.”
and how much risk are you good on being at?
Here’s why I ask: average LTC Medicaid NH room&board payment is abt $190 a day. So roughly $70K that Medicaid pays a NH per year for room & board. Private pay rates tend to be 2x - 3x Medicaid, so 140K - 280K per year.
So if Medicaid - for whatever reason due to reviewing “dependency” - delayed or disallowed his LTC eligibility, do you have the $ to pay up front each month at private pay rate for 3-6 mo to a year? And you ok on running this risk?….. like it’s not going to be an issue that interferes for paying your own personal bills and you have the time & humor to answer in detail to whatever minutia Medicaid requests on the dependency and within 14 days over the rest of 2022?
If not, my suggestion is just fold it and let it be that in your heart and in your wallet, you find contentment that you did all you could to financially support dad and forgetabtit with IRS & Medicaid.
Saying someone is your "dependent" means that you are providing for more than a certain percentage of cost of that persons care. As for your child you provide everything. That cost means that your senior is not without financial resources as YOU are in fact a financial resource. That means that senior may NOT be eligible for government assistance.
So check with an accountant and check with medicaid itself. Again, you can't get this one wrong, so don't depend on a Forum in which we all have our own opinions but few of us are expert trained advise.
Good luck. Interesting question.
If he is in a NH you cannot claim him. He is being supported by the State/government not you. You have to provide over 50% of his care. So if he brings in 10k a year and and you have to provide another 10k to provide his care, then maybe you can claim him. But you have to prove it. Him living with you does not make him a dependent. If most of his income is SS and other income does not amount to a certain amount a year, he may not have to pay federal and State taxes anyway.
You need to talk to a tax accountant before you go this route.
Regardless, I wanted to know if other people who claim a parent as a dependent have had run-ins with Medicaid because of claiming a parent as a dependent.